The receipts for lands and timber for the half-year commencing 1st January and ending 30th June, 1864, were $38 907.78; interest and investments for the same period $43,734.57; annuities and grants, $17,310.00; making a total of $95,042.35.

The payments, comprehending annuity and interest money, made to Indians, and including salaries, surveys and incidental expenses, amounted, for the same period, to $63,006.36. At the commencement of the year 1864 the total sum, as represented in the books of this Department, at the credit of the various Indian bands, was $1,530,343.31. At the termination of the half-year ending 30th June, 1864 from payment of instalments on lands, from. new sales, timber, & c., the amount, after defraying salaries and all other charges, was $1,562,530.19 - shewing an increase of $32,186.88.

During the period referred to, no additional lands of consequence were brought into market.

REPORT OF THE DEPUTY SUPERINTENDENT OF INDIAN AFFAIRS.

To the Hon, Alexander Campbell,
   Superintendent General of Indian Affairs:

SIR, - I have the honor now to submit a brief report concerning the affair's of this Department, for the period (in order to harmonize with the altered Financial year), embraced between the, 1st January, and 30th June, 1864.

The statistical information in tabular form, contained in the accompanying returns, has been compiled upon the same principle as was adopted in the preparation of those for the year 1863.

It will be observed, with some satisfaction by many, in addition to those who profess to take a deep interest in the Indian race, that the introduction of civilization among them, so far from threatening their gradual extinction as a people, is producing results of an, opposite description. This is assignable to various causes, one of the most perceptible of which, is the increased comforts, tending to a more general exemption from sickness and disease, which are secured to them by their location upon farms, where, in substantial habitations, and with diet in sufficient quantity, and usually of good quality, they escape from the privations incident to their condition when attempting to live mainly by the chase after the inroads of civilization had impaired the value of their hunting-grounds.

Another reason assignable for an increase, instead of diminution in their numbers,is